Sri Lanka Rolls Out 100bn‑rupee Fuel Subsidy
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- President Anura Kumara Dissanayake announced a 100‑billion‑rupee (≈$317 million) three‑month relief package that includes fuel and fertilizer subsidies, a temporary boost to the cash‑transfer programme for the poor, and free electricity for low‑usage households.
- The relief package will be funded from the existing budget and will cover electricity costs for consumers using under 90 units per month for the next three months.
- Sri Lanka’s government is in talks with the International Monetary Fund for a staff‑level agreement on the next tranche of the $2.9 billion assistance, timed with the upcoming Sinhala and Tamil New Year.
- The West Asia conflict has triggered sharp hikes in fuel, LPG and electricity prices, adding a second major crisis after Cyclone Ditwah in December 2025.
- India delivered 38,000 metric tonnes of petroleum (20,000 MT diesel and 18,000 MT petrol) to Sri Lanka on 28 Mar 2026 after a call between Dissanayake and Prime Minister Narendra Modi.
- Ceylon Petroleum Corporation (CPC) says its current fuel stocks will last until the end of May and that it is discussing additional supplies with Russia and China; a QR‑code rationing system now limits weekly fuel quotas by vehicle type.
- Lanka IOC, a subsidiary of Indian Oil Corporation, reports fuel stocks sufficient through mid‑May.
Why it matters: The subsidy directly cushions low‑income Sri Lankans and small‑scale consumers against the sharp price spikes caused by the West Asia conflict, while the government absorbs the cost within its existing budget, easing fiscal strain ahead of IMF talks and the upcoming New Year festivities.
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